PEGA: Berman Tabacco Alerts Investors with Losses in Excess of $200,000 of Deadline for Seeking Appointment as Lead Plaintiff in Pegasystems Inc. Securities Class Action

Boston, Massachusetts--(Newsfile Corp. - May 23, 2022) - Berman Tabacco, a national law firm representing investors, is investigating potential securities law violations by Pegasystems Inc. ("PEGA" or the "Company") (NASDAQ: PEGA), a company which develops, markets, licenses, hosts, and supports enterprise software applications. The Company is based in Cambridge, Massachusetts.

About the Securities Class Action Filed

On May 19, 2022, a securities class action was filed in U.S. District Court in the Eastern District of Virginia "all persons and entities that purchased PEGA common stock between May 29, 2020 and May 9, 2022, inclusive" (the "Class Period")

According to the complaint, on May 29, 2020, PEGA was "sued by one of its principal competitors, Appian Corporation ('Appian'), in Virginia circuit court, for stealing its trade secrets and violating the commonwealth's computer crime law (the 'Appian Litigation')." The Appian Litigation "alleged that PEGA retained an employee of a government contractor from 2012 to 2014 to secretly access and learn about Appian's software, and pass the information on to rival PEGA in order to improve its products and better train its sales force."

The complaint further alleges that "[o]n May 9, 2022, PEGA disclosed that the Virginia circuit court jury awarded Appian more than $2 billion for PEGA's trade secret misappropriation." Further, "[a]ccording to press reports, during the seven-week trial, the jury was presented with substantial evidence supporting Appian's claims, including videos, emails, and text messages, and evidence that Alan Trefler, PEGA's Founder and Chief Executive Officer ('CEO'), personally attended a meeting with the 'spy' and received Appian trade secrets supplied by the 'spy.'" In response to the verdict, "PEGA's stock price dropped from $65.93 per share on May 9, 2022, to close at $52.25 per share on May 10-a one-day decline of 21% that wiped out over $1 billion in market capitalization."

The complaint asserts that "Defendants misrepresented and/or failed to disclose that: (1) PEGA had engaged in corporate espionage and misappropriation of trade secrets to better compete against Appian, a principal competitor; (2) Defendants' product development and associated success was, in significant part, not the result of its own research and product testing but rather the result of such corporate espionage and trade secret theft; (3) Defendants had engaged in a scheme to steal Appian trade secrets, which was not only known to, but carried out through, the personal involvement of the Company's CEO; (4) the Company's CEO and other officers and employees did not comply with the Company's written Code of Conduct, including its express prohibition on 'stealing' confidential information from a competitor and 'misrepresenting your identity in hopes of obtaining confidential information'; (5) the Company was 'unable to reasonably estimate damages' in the Appian Litigation; and (6) as a result of the foregoing, Defendants' statements about PEGA's business, operations, prospects, legal compliance, and potential damages exposure in the Appian Litigation were materially false and/or misleading and/or lacked a reasonable basis when made.

How to Seek Appointment as Lead Plaintiff

If you wish to serve as Lead Plaintiff for the Class, you must file a motion to serve as Lead Plaintiff with the Court no later than July 18, 2022. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class. An investor's ability to share in any potential future recovery is not dependent upon serving as Lead Plaintiff.

If you sustained losses in excess of $200,000 from your transactions in PEGA common stock during the Class Period and are interested in learning more about serving as Lead Plaintiff, please provide your information here: Shareholder Contact | Berman Tabacco.

A Lead Plaintiff is appointed by the court to represent the members of the putative class in the lawsuit. Typically, the Lead Plaintiff is the applicant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.

Berman Tabacco typically represents individuals and entities in class actions on a contingency fee basis, meaning we advance all attorneys' fees and expenses in the litigation. If the case is successful, the firm will ask the court to award the firm attorneys' fees and the reimbursement of expenses from any settlement fund. If we are not successful, you will not be responsible for the reimbursement of attorneys' fees or expenses.

About Berman Tabacco

Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has over 35 years of experience litigating class action case and has offices in Boston, Massachusetts and San Francisco, California.

This notice may constitute attorney advertising.

Contact:

Berman Tabacco
Jay Eng, Esq.
One Liberty Square
Boston, Massachusetts
(800) 516-9926
Email: law@bermantabacco.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/124988